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renounces over 1 billion in aid

A strange thing has happened in Tesla. The Palo Alto company has in fact withdrawn the application with which it asked for state funding for the construction of its German battery factory, which should arise not far from the Gigafactory who is preparing to start the business.

Yet Tesla itself makes it known that the industrial plans remain unchanged and that the battery construction plant is still planned.

A useful sum

The loan requested by Tesla last January was part of the European Union operation with which, through the system of Ipcei (Important projects of common European interest) we want to support companies to produce drums in the Old Continent and which saw among the applicants, in addition to the American company, other big names such as Stellantis.

Tesla, in particular, would have had access to 1.14 billion euros and in all probability would have been able to obtain it by the end of the year. It would have been a nice help, considering that Elon Musk and associates, to give shape to that plant, have planned to spend 5 billion euros.

Other funding remains

Tesla has not commented on its decision, let alone explained the reasons why it has decided to back down. However, he said through a spokesman that “he has already informed the Federal Ministry of Economy and the Minister of Economy of the state of Brandenburg that he is withdrawing his Ipcei application for state funding”.

The company also made it known that “it is respecting all the plans announced on the production of batteries and their recycling, which will be held inside the Gigafactory in Berlin”. In fact, relations with Germany finally seem relaxed. After the tensions with some environmental associations that have delayed the construction of the factory and the complaints of Elon Musk about the excessive bureaucratization of the processes to obtain permits and authorizations, the factory is now well underway, with production starting by the end of the year.

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German authorities also said that Tesla has applied for regional funding to expand its presence in Germany. It did so in November 2020 and hasn’t withdrawn that question at all. In this case the figure remains unknown, but it is thought that it could be used to cover about 6.8% of the total expenses.

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